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3 Oct 2012

Report underlines importance of early investment in market research

The period between phase-III development and regulatory approval is an important one for market research.

Many of the leading pharmaceutical companies spend a significant amount of money on market research at an early stage, a report has found.

Research by Cutting Edge Information shows that the average company spends 17 per cent of a brand's marketing budget on market research between phase-III clinical development and market approval.

In contrast, other initiatives take just a three to 12 per cent share of the marketing budget during this commercialisation period.

According to Cutting Edge Information, this early investment increases a brand's chances of a quick sales uptake as it enables the company's commercialisation team to understand the needs of patients and doctors in the target market.

"Time and again, interviewed executives emphasised the importance of understanding the markets early in order to achieve a quick sales uptake," said David Richardson, research manager at Cutting Edge Information.

He added that by focusing their commercialisation efforts on uncovered market opportunities, pharmaceutical companies "are able to hit the ground running once they receive FDA approval".

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